Car price reduction, what can we expect?
Car price reduction, what can we expect?
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May 7 2013, 01:52 PM
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#1
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They already spent all the money on winning the election. Now have to raise taxes
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May 7 2013, 08:54 PM
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#2
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QUOTE(dares @ May 7 2013, 06:09 PM) Easy. Toyota can't offer the Prius at the tax free price. If they would do it, they may as well stop selling their other cars. And since they probably have a hard time churning out enough Priuses... I think if they are forced to sell it at a lower profit, they would rather not import it. Doesn't make sense for them. That Audi actually did it is mind blowing, I'm not sure what they were smoking, but I think I'd like to try that shit. Basing the taxes on how safe, efficient and clean the car is would make more sense, with hybrids getting the biggest tax cuts, while other models would also get tax cuts. Not having fuel subsidies instead would make the most sense. Though actually, that would be against my interest. I don't want to change my car, and it's a thirsty car. |
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May 8 2013, 12:00 PM
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#3
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QUOTE(dares @ May 8 2013, 09:16 AM) I don't buy it. Look at Honda: Insight, Jazz Hybrid CBU and the normal Jazz sold in the same RM90k-RM100k bracket of it's bestselling Honda City. The Prius C is 20k above the Vios, the Prius something like 20k or so above the Altis? That the better equipped hybrid is more expensive than the regular car is acceptable.What does Toyota has in that price range? Vios and Altis? If the Prius was priced around RM100k, that's a bit more reasonable (Still with a fat profit margin). But RM140k? C'mon! Also, I don't think Honda's hybrids are quite as good as Toyota's. @mystvearn: The governments in Europe usually doesn't raise petrol prices, the petrol prices go up as the crude oil prices go up. There may be tax hikes once in a while, but usually it is just because oil is getting more expensive. We don't feel those increasing prices because the government is subsidizing petrol depending on how much it costs. I believe car parts are taxed more than those 20% here... car parts tend to be much cheaper in Europe (despite the high taxes) than they are in Malaysia. Labour though is indeed very expensive. Here it is maybe 80-90% for the parts, rest is labour. There it is 30% for the parts, rest is labour. Yes, if car prices would go down so would the length of loans. Usually 3 years is the most, maybe 5 years you can get in Europe (AFAIK). So while you may have to spend less on a car you'll have to pay it off faster. But IMHO that's fine. People who still want it can save money first before buying the car (which is more sensible IMHO). Germany is also doing fine by forcing those bailed out countries to buy their products. Why, during the crisis, did Greek have to buy the war ships it had ordered from Germany earlier? What does it need them for? They need to save money, right? Yet Germany forced them to buy and pay for these ships... As for the healthcare sector I believe a big part of it is that it belongs to the government, which can run it non-profit. (Not sure if it is done that way, but surely less for-profit than Europe or worse yet the US). In the US a big part of the costs is insurance for doctors in case they screw up and get sued. Medicine is expensive because the pharmaceutical companies can charge as much as they want to. If the government is strong enough it can force them to charge lower prices or even copy medicine. The latter happened in India recently. Anyway, I think it would be best for people if CERTAIN cars are made more affordable. By that I mean safe B segment cars and maybe safe MPVs, also a requirement are not so good performance but good fuel consumption. Basically if it is a luxury thing, pay for it. If it is necessary to get you safe to work, bring your family around safely, then it should be affordable. Petrol prices will have to rise accordingly, though maybe with less corruption that effect may not be so strong. |
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May 8 2013, 04:44 PM
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#4
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Wow. And I thought my postings were long.
As for traffic jams... As long as there are not more people there to drive the cars there won't be more traffic jams, only newer cars as old cars are finally scrapped (some really need to be removed from the roads...). Taxes only need to go down for sensible cars. You want luxury, fun etc. please pay for it. No need to make a big BMW cheaper. Even powerful versions of a car (say B segment over 100 HP) should be taxed higher. One problem right now in Malaysia is the crappy cars in awful condition on our roads. |
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May 8 2013, 08:21 PM
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#5
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QUOTE(stix @ May 8 2013, 04:52 PM) I really don't want to go in to the 'why the rich needs to pay more when they pay even more taxes' topic. It's like you're saying the poor should not pay the government tax when they are dining in a restaurant while the rich has too. Because they also profit from the country having money to spend on better infrastructure, better education, etc. So those who can manage to pay more should pay more, IMHO (all within reasonable limits). Also, higher taxes for luxury items/cars is IMHO acceptable. Again, within reasonable limits. S class leave at 100% tax, and below that gradually reduce. Something like that. The government doesn't need to help rich people build a collection of supercars.As for traffic jams, why is it so hard to comprehend by some people. Lower down the car prices and at the same time, cap the maximum amount of years that you can extend on your car loan. If you can afford to get a Myvi within 5 years, perhaps you'll be able to get a civic maybe(?) when taxes are removed. If one dreams of extending their loan to 9 years and finally being able to get their dream mercedes, i'd say Shorter loans are desirable, as people should have more financial certainty. With lower taxes for reasonable cars I expect those really crappy cars to disappear from Malaysian roads. Cars that polute like no tomorrow, that are dangerous at any speed. Other than that people will be able to drive better cars, especially at the low end of the market. Singapore needs to limit the number of cars on the road... that should be the main reason for the high car prices (after all the right to buy a car is auctioned off, and there is a limited number of licenses). Makes sense on such a small island, but Malaysia has the space. Only KL suffers from the number of cars, so once there is a decent and safe to use public transport system a congestion charge should be a good thing. Maybe give free car parks to people who do car pooling, or next to public transport hubs so that people from outside can drive there, and then switch to public transport. Actually AFAIK red numberplate can be used between 7am and 7pm, but you'll have to pay for it. |
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May 9 2013, 11:05 AM
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#6
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I beg to disagree with laptops and computer parts. Go for a cheap power supply, and your computer may die soon, or it will be unstable.
Or my laptop... I bought a Dell. A bit more expensive than a similarly speced Acer, and I topped up a bit for extended warranty. What can I say... It is still working after 5 years, where my friends had to replace their Acer after 2-3 years. It's not so easy... With CE and IT I would invest in good quality and not just look at specs. For contis the FL can be a significant upgrade, with new engines, new features, ... while sometimes the exterior remains unchanged. Also for some reason new tech doesn't trickle down to ASEAN Japanese cars... |
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May 9 2013, 11:57 AM
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#7
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I disagree with Japanese cars being over engineered. Germans probably are more over engineered. Look at the video of a sales man jumping on the open door of a Golf, rocking the car. And after that it is still like new and closes perfectly. Also they so an incredible amount of testing on their cars, under extreme conditions.
Japanese cars were over engineered perhaps, but now they seem to rely more on reputation and old tech. Contis usually don't skip on their safety features, though they may otherwise be a bit empty. Those things are optional then. Several A and B segment cars now have city brake... A system that stops the car if sensors detect an obstacle in front and it becomes necessary to avoid a crash. And those are very affordable cars that may come without air con. Also some of these new features that come as standard With the FL aren't available as an option before. I think what you described is more common with Japanese cars. |
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May 9 2013, 01:26 PM
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#8
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QUOTE(mystvearn @ May 9 2013, 12:15 PM) Sorry. Not that kind of over-engineered. Japs like to give a lot into the new model, then settle for minor FL updates. Then give more effort in the next model, and minor FL updates. That what I meant by over-engineered. Too much emphasize on new model and relax for FL. Ford also follows this kind of model. I see.Germans give same amount of effort every time so there is significant improvement over previous model FL or not. Most improvement seems to be coming from VW AG rather than BMW/Merc. VW with its cunning modular platform series build cars like building lego. So their turnover rate is quite fast. They can afford that turnover rate. Read more here: http://www.themalaysianinsider.com/drive/a...il-of-carmakers Meanwhile in Malaysia: Perodua...nvm Proton, give a lot of effort, then public buy, public complain, then FL is better. If FL settles all or most issues (public no longer complain), all other FL's are just minor updates just to make it look fresh until about 7 years for next model. The best thing about having local car company is that, public can complain (which they are entitled to) and it will reach proton directly or indirectly. Problem with overseas cars, not that much. Export-centric countries like Japan/German actually need to rely on global public complain, then only settle issues or they find problems themselves through continuous wear and tear usage. Very simple example is the rims on the original Satria Neo. Those turbine rims. It looked cool to the designers when it first came out. In fact, I have a sneaky feeling the designer played to much Need For Speed Underground with those rims on the car The take home point here is, if someone promise to abolish all tax, stop and think about it. How will he/she balance the books. I'm not saying it cannot be done. It can be done if on corruption and actually persecuting those involved, but whichever gomen needs to be super efficient in doing so-which is possible. At my estimates, corruption vs tax abolish, the gomen is about RM 200 mil short of funding tax free cars as well as maintaining current subsidised items. I'd rather have cheaper petrol than cheaper car. Cars devalue with price. Petrol nope. It means that with I can drive like I please and not be obsessed with MPG. Well, if they get back all the illegal outflow, then problem solved. A better method is actually to leave that 70% tax for Lambos, Porches, Veyrons-those supercars or cars with big engine displacement or more than 3.5L. Though engine displacement is flawed formula. Better still tax cars based on how fast it gets from 0-100 km. Cars <5 secs 0 to 100 will be taxed 300%. So you know that the super rich are helping subsidise your Telur Gred A. I favour the super rich being taxed more. Its a win-win situation. Not like Brazil where the rich and poor live side by side. The Finland model is better. The more balance you get, the more compassionate/caring the society is amongs each other. The new Fiesta FL does offer laser guided auto braking, which I believe wasn't available as an option on the previous model. 5 of the 10 engines offered are new (the most frugal one does 3.3l/100 km Anyway, I think that's not too bad for a facelift. Before a German car (including Ford) is released they do a ton of torture tests though to find flaws. Of course not all are found, but they put in quite some effort. As for tax free, I think the only way they can pull that off is by stopping corruption. So BN won't be doing it, PR might have been able to do so, but who knows. Maybe they would have been led to the dark side as well. The thing with the petrol price is that I drive without regard for the fuel consumption, and I guess others do so as well. While that is fun I realize it is not good for the environment, and also not good for our health (more polution by higher FC and the use of old cars that polute a lot, since people can't afford to replace them with newer cars). Also, it would be good if people shift to more frugal cars. Those become more valuable as petrol prices go up. It could be the real price, without subsidies, but also without taxes. Haha, but what if you buy a Maybach that is electronically limited to 0-100 in 8s? (Car makers may do so...) Low tax then? I think the car price is a good indicator. Cars below 50k have the lowest tax rate, 100k is still very low, 150k gets higher, 200k will be higher yet, 300k will be high and above that you'll bleed. Basically if you are rich enough for a luxury item, then please pay for it. Also, penalities are given for cars without ESP or with less than 6 airbags (the fewer, the higher the penalities). That way car makers can't save money/increase profits by offering less safe cars. Likewise, the ASEAN NCAP rating (if it also does side and pole impacts) can be used to determine the tax. 5 star is tax free, 4 star = +5%, 3 star +10%, ... This post has been edited by kadajawi: May 9 2013, 01:36 PM |
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May 9 2013, 06:13 PM
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#9
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QUOTE(mystvearn @ May 9 2013, 02:09 PM) Yes, unless the BN government wakes up soon, by the next 3 GE, they can forget about ruling. Why 3GE and not next GE, the king-maker is Taib Mahmud. I don't see Sarawak fall into opposition hands any time soon. In order for PR to win, they need to overcome the gerrymandering. BN needs to have less than 40% popular vote before you can actually see anything. More info here: http://en.wikipedia.org/wiki/Gerrymandering#Malaysia Maybach? Nvm, already defunct While it would be a shame to see those 120Y disappear... I do think in this case they may be able to afford newer cars. Either since affordable cars get cheaper (government can allow them to get long term loans, give them money to replace their old cars, ...), or since second hand cars get cheaper. Then they may be driving a second hand Saga BLM etc. Also, at least in Germany not every old car can apply. It has to be in good and ORIGINAL condition. Aftermarket parts, unless they were available back then, won't work. Basically you have to show that it's a classic worth preserving, perhaps even brought to classic car shows, classic car rallying etc. (It may not be that strict, but you get the drift). QUOTE Yes, that method is best. So you tax cars and people by income bracket. You cannot put 55% income tax across the board. 55% of RM3k is different compared to RM3mil income. Sure you get more from 3 mil, but 55% that guy on 3 mil can still eat Jenahak and Salmon everyday. I disagree. NCAP results take into account that small cars are less safe than big ones. It is meant to compare cars within each class, so that people can base their buying decision on that. Also, the Fiesta shows that safe cars can be made for 80k (and that is AFTER the big taxes). The Preve CFE, if it had 2 more airbags, is a safe C segment car that can sell for around 70k, despite high taxes. Drop those taxes and who knows, the Preve could be around 40-50k? A 5 star C segment ANCAP car. Relatively safe cars need not be expensive. Most B segment cars have a 5 star rating, many A segment cars too.NCAP cannot be used for tax as cheap cars are usually poorer equipped and have poor body rigidity. Saga only 2 airbag, so will be higher in tax than some Volvo with its pedestrian airbag, lane departure warning and auto brake application. You can limit a baseline car of what to expect. Meaning, if no airbag, tax 50%, but by doing so, you will also increase the base car price across the board. There is no problem with this method. However, it can only be done once Malaysians value their live. If Passengers all wear seatbelt then can be done. If not, forget it. If there is no drive from the public the gomen will not implement. I'm still not sure if you still kena saman or not of not wearing rear seatbelts? When mandatory airbags for new cars was introduced, car makers complain need to charge RM3k more for airbag. Now all settled. Truth is, car makers want to make most profit with least amount of stuff. That is why the vios tin milo edition is still selling very well. Actually it cost lest to put airbag than that especially if you are a huge car manufacturer that buys in bulk. Good thing is that, people are now getting picky with their cars. Those who don't want a Preve CFE (c-segment) are happy with their Kia Rio/Ford Fiesta (b-segment) car. Smaller car, similar price-better brand, better fit and finish. Proton is heading for trouble if do not see this. The trend now is actually small luxury rather than big luxury car. Fiat 500, mini cooper are selling well because they are small and sort of luxurious. Price/car size no longer holds true in future. At the end of the day, unless you use your D-segment Camry's rear seat all the time, chances are the rear seats are in great condition, as most of the time the car is used for getting to work. The only time you will need a big car is balik kg with those kuih raya and a trip to IKEA. If you have family, then yes you will use the rear seats more often. Even then for a working family with 2 kids <12 years, with 2 cars, is better to get an A-segment and C-segment car. The A-segment is the one you use everyday. C-segment only for balik kg, supermarket. Those who can't afford 2 cars, are better off with settling with a B-segment car. Those who can afford may also want the same cars. Husband and wife edition ford fiesta. Can be done. Not sure why it has not been done. My wife and I both use SGS2 (different colours) Making the tax dependent on the baseline specs is interesting, though IMHO not necessary. Because of the high taxes on a car with less than 6 airbags, the car becomes more affordable if it has those 6 airbags (the rest can be baseline spec). Since car taxes are very high now, car prices would not go up if this were put into place. At most it may stay at the same level for dangerous cars, while safe ones get cheaper. As for safety, I think at least some Malaysians care about safety, but they think a crash at "low" speeds, like 60 km/h, is not dangerous. The media is needed to educate people that is NOT the case. One could build public demonstration trucks that have a car interior on rails which abruptly stop, simulating a crash. Then put mannequins and simulate a crash at 30 km/h (which can be deadly already!). Tour around the country with that, and show it on TV too. Show the negative effects of airbags when passengers don't wear seatbelts. In Europe too people didn't want to wear them, until campaigns were done to educate them. Just look at the TV spots from the UK, which look like Tarantino's Death Proof. I don't see those small luxury cars doing well in Malaysia (though I don't visit KL often). Size matters here. Btw., nope, I'm not surprised by people giving way to big/fast looking cars. In Germany we even have a word for that... "Überholprestige" (21000 results on Google). It "measures" how likely it is that others will give way if you drive on the highway. The owner of a slightly tuned Opel Corsa A (B segment car from the early 80s, so really rather small) complained about others never giving way or pulling into his lane on the highway... despite the fact that his car will easily do 350+ km/h. That's probably also why especially German cars look super agressive from the front these days. The Mazda MX-3 seems to have been a car with good "Überholprestige", though it is not that fast. But it looks fast. To be honest when I'm on the highway in my Kangoo people do give way, though I sometimes do have to flash my high beam. IIRC it wasn't so before I had DRL... Sometimes I wonder what they are thinking, though I'm not driving fast, only around 130... |
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May 9 2013, 09:25 PM
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#10
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I'm in favour of a combination. Base tax is 0%. If a car has a 4 star rating, +5%. 3 star +10%. CO2 above 120 whatever the unit is, +5%, above 200 +5%... something like that. Car price above 50k 5%, above 100k 10%, ... etc. Maybe not as rough.
As for Iskandar... I'm fine when foreigners come and bring in money. After all that's what the country can need. But I think those places are probably bought more as an investment... which again, is fine, cause once the market has collapsed we can get a nice house and move there As for Goldman... I don't think it is ever a good idea doing any kind of business with them. They don't intend to serve their customers, they intend to serve their bonuses. GST doesn't only take from the poor, it also takes from the rich. While those aids are (hopefully) just going to those in need. It always depends, I'm used to a 16 and then 19% GST... as long as there is something to balance out the losses due to that it's fine. But yes, it would mostly screw the middle class. |
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May 9 2013, 09:54 PM
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#11
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As for fuel they have to fill up with 97 though, so at least it is not subsidized.
Yes, they can live like millionaires, but then they are robbed. It depends on if the poor feel it the most... if the government gives them handouts to balance it out, it will be the middle class who suffer the most. But we are kind of off-topic... |
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May 11 2013, 12:10 AM
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#12
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QUOTE(jayraptor @ May 10 2013, 10:06 PM) Poverty happens because there is no business opportunity and job opportunities for the people. Also, low salary but high direct and indirect tax through sales of necessity goods and services caused people have not much remaining cash left even with very careful spending. The Fiesta with 120 HP and DSG is around 20k Euro in Germany, with the lowest specs possible. Our Fiesta is higher spec and costs about the same. Admittedly 20k/80k is list price, you can expect around 20% discount. But similar prices.Since no change of new management, the old usual policy stays and car price will keep increase on every facelift and new replacement model. Else, we would be getting: - Camry, Mazda6, K5, Sonata 2.0L at RM90k for D-segment - Altis, K3, Elantra 1.8L at RM70k - Vios 1.5, Rio 1.6, Fiesta 1.6 at RM40-50k Other countries, new FL and new replacement do not increase selling price. Unless model 2005 is low quality substandard model but in 2010 upgraded to quality model on par with Japanese/Conti for quality premium made category. However you CAN get a Fiesta for maybe 50k, other B segmenters too, but then it will be empty (maybe not even central locking or aircon) and has 60 HP. There is another occasional poster who writes excellent stuff, but his name currently eludes me. At university in Germany RM 1500 was enough for one month. Just. But that's as student, so you get a ton of discounts, free public transport, cheaper food (usually 3 to 4 times as expensive), no car, cheap accommodation with free 100 Mbit internet. It would be impossible to even survive on this little. AFAIK the car with the most legroom is the Skoda Superb. But it might be a bit excessive. This post has been edited by kadajawi: May 11 2013, 12:12 AM |
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May 11 2013, 11:44 AM
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#13
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A big problem with Greece was an insane amount of corruption and bad politicians who only cared about their own pockets. There is a German saying... After me the floods (as in the Biblical one that erased almost all life on earth). Meaning I don't care what happens once I have left office/am dead.
Basically Greece has money, but it is on the foreign bank accounts of a few croonies etc. People who also refused to pay taxes etc. This post has been edited by kadajawi: May 11 2013, 04:38 PM |
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May 11 2013, 04:40 PM
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#14
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QUOTE(BravoZeroTwo @ May 11 2013, 04:24 PM) @BravoZeroTwo: As I mentioned, the Skoda Superb offers the most space below 200k. Otherwise Polo Sedan and Almera offer a lot of legroom AFAIK (in the B segment, if you need to stay below 100k). Depends on what you need, really. Also, in the Alza you can push back the 2nd row, so maybe then it has enough space? |
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May 11 2013, 06:25 PM
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#15
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As in pickups? Isn't the priority there to offer as much space at the back (on the bed) as possible?
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May 29 2013, 08:17 PM
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#16
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Price for expensive cars will go down a bit. Woohooo...
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Jun 14 2013, 07:39 PM
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#17
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You won't be able to afford a 100k car when you can just afford a 100k car with a 9 year loan now. Maybe then loans will only have a max of 3 years, perhaps 5.
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